CANADA STOCKS-TSX rallies 1.3 percent as gold-miners drive gains

Wed Aug 10, 2011 3:15pm EDT
 
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 * TSX up 161.68 pts, or 1.34 pct, at 12,270.94
 * Seven of 10 sectors stronger
 * Gold miners drive gains
 * Energy issues bounce with the price of oil
 * Financials sink on euro zone fears
 (Recasts, updates prices, adds analyst comment)
 By Trish Nixon
 TORONTO, Aug 10 (Reuters) - Toronto's main stock index
climbed more than one percent on Wednesday, clawing back from
early losses, as gold-mining shares rallied with the price of
bullion, outweighing a sinking financial sector.
 The TSX rose even as global stocks slumped on speculation
about the strength of French banks holding troubled peripheral
euro zone debt that tapped into investors' worst fears about
possible contagion from the euro zone debt crisis. [MKTS/GLOB]
 The price of gold rose to a record high, extending its
biggest rally since 2008, as anxious investors picked up the
safe-haven asset, which helped buoy Toronto's resource-heavy
index. [GOL/]
 "We've managed to outperform the rest of the planet ...
mostly on the precious metals sector," said Francis Campeau,
broker at MF Global Canada in Montreal.
 "Money is moving out of the banks and into gold stocks or
miners."
 At 2:32 p.m. (1732 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was up, up 161.68 points, or
1.34 percent, at 12,270.94. Seven of the 10 sectors were
higher.
 The heavy-weight materials sector, which includes miners,
was up 3.8 percent, with the gold-mining sub-group adding 4.4
percent.
 Barrick Gold ABX.TO topped the list of influential
gainers, up 5.5 percent C$49.42, followed by Goldcorp G.TO,
which added 6 percent to C$49.87.
 The energy sector was up 2.22 percent, boosted by rising
oil prices. U.S. crude futures rose 4.5 percent after a
government report showing oil inventories fell. [O/R]
 Canadian Natural Resources CNQ.TO, up 2.9 percent at
C$35.78, and Suncor Energy SU.TO, up 1.9 percent at C$31.58,
were among the index's top gainers.
 Meanwhile, the financial sector sank 0.5 percent as market
jitters about the strength of French banks dragged Canada's big
banks and insurers lower.
 Manulife Financial MFC.TO was the heaviest weight, down
3.3 percent at C$12.76, while Toronto Dominion Bank <TD.TO fell
1 percent to C$74.32.
 (Editing by Jeffrey Hodgson)